Image by Getty Images via @daylifeMANILA, Philippines - Troubled by a barrage of complaints over the sudden spike in electricity prices, Manila Electric Co. (Meralco) announced on Wednesday that its customers will heave a sigh of relief with a P1.26-per-kilowatt hour drop in the generation charge this month.Meralco Utility Economics Head Ivanna dela Peña said the decrease was due to lower electricity costs from suppliers -- the Wholesale Electricity Spot Market (WESM) and independent power producers or IPPs.
Dela Peña said cost of power from WESM dropped by a hefty P4 to P7.36 per kWh for the supply month of April from P11.36 per kWh the previous month.
IPPs likewise registered a P1.24 per kWh downward adjustment over the same period as suppliers San Lorenzo and Sta. Rita plants reverted to the use of natural gas after using condensate fuel since the second week of February to early March.
Meralco bills last month showed the biggest increase in generation charge, which accounts for up to 60% of total electricity costs. The generation charge shot up by P0.93 to a record P6.7699 per KWh in April from P5.8417 per kWh in March. The April figure was equivalent to a 60% increase since the start of the year.
Meralco explained that the record-high power rates was due to the spike in demand for electricity this summer, when a number of power plants were undergoing maintenance.
Now that some of these plants have returned to normal operations, Meralco said the power supply deficiency in the past months has eased.
"With more plants running close to full capacity, there is more supply to cope with the demand, effectively bringing rates down," Meralco External Communications Manager Joe Zaldarriaga.
Zaldarriaga reiterated that the generation charge is a pass-through charge, and Meralco does not earn from it.
"The generation charge can move from month to month based on many factors beyond our control like fuel prices, working condition of the power plants and WESM prices, among others. Should there be adjustments in the generation charge, it is our duty to reflect these changes in the customers' bills, such as this month's reduction," he said.
"Meralco does not add any mark-up to the cost of electricity purchased from these electricity suppliers whether it is an upward or downward adjustment," he added.
http://www.abs-cbnnews.com/business/05/05/10/meralco-says-customers-see-lower-bills
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